CIGNA Corporation Strategic Performance Share Program Description

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

CIGNA Corporation's Strategic Performance Share Program is a long-term incentive plan for executives, rewarding them based on the company's performance over a three-year period. Executives receive performance shares, with the final payout determined by how well CIGNA meets pre-set goals. Awards can range from 0% to 200% of the initial grant, with a maximum of 300,000 shares per executive per year. The program aims to attract, motivate, and retain top executives by linking rewards to sustained company performance. Special rules apply if an executive retires, becomes disabled, or leaves the company.

Read More Arrow
EX-10.1 2 c00088exv10w1.htm EXHIBIT 10.1 Exhibit 10.1
Exhibit 10.1
Description of CIGNA Corporation
Strategic Performance Share Program
The Strategic Performance Share Program (“Program”) is designed to:
•   pay at the median for competitive performance results against stretch targets;
 
•   incent and reward superior results achieved through sustained long-term financial discipline and strategic accomplishments that will benefit CIGNA over the long-term, but may not be reflected in annual results; and
 
•   provide competitive pay opportunities that allow the company to attract, motivate and retain executives who will drive competitively superior performance.
Strategic Performance Shares (“SPSs”) have a three-year performance period and are awarded based upon an individual executive’s long-term incentive target multiplied by an individual performance factor (ranging from 0-200%). The award is converted to a number of SPSs based on the stock price at the time of the award.  At the end of the three-year performance period, the People Resources Committee of CIGNA’s Board of Directors (“PRC”) assesses CIGNA’s results against the goals set at the beginning of the period to determine the number of SPSs earned and paid out.   The SPSs earned and actually issued to eligible executives will range from 0-200% of the SPSs awarded at the beginning of the performance period, and the actual number will depend on the degree to which CIGNA achieves the goals set at the time of grant.  
No executive can be awarded more than 300,000 performance shares in any year. Upon termination of employment due to retirement, death or disability, or after a change to an ineligible status, the disposition of any outstanding awards will be solely at the discretion of the PRC or its designee in accordance with the provisions of the CIGNA Long-Term Incentive Plan.